Monarch Announces Settlement of its Lawsuit

Monarch Casino & Resort, Inc. (the “Company”) today announced that the
litigation commenced in April 2003 against the City of Reno and other
interested parties petitioning the Second Judicial District Court of
Nevada to review the City of Reno`s decision to enter into an agreement
for the acquisition and relocation of the Old Reno Casino in downtown
Reno, to condemn the real property occupied by the Old Reno Casino, to
declare the agreement null and void and to preclude the City of Reno from
condemning the real property has been settled. The settlement is expected
to become final on February 11, 2004, upon the consent of the Reno City
Council. The terms of the settlement, by agreement, are confidential.

Monarch, through its wholly-owned subsidiary, owns and operates the
tropically-themed Atlantis Casino Resort in Reno, Nevada. The Atlantis is
the closest hotel-casino to, and is directly across the street from, the
Reno-Sparks Convention Center, which completed a $105 million expansion
and renovation in August 2002. The Atlantis is recognizable due to its Sky
Terrace, a unique structure rising approximately 55 feet from street level
and spanning 160 feet across the street with no intermediate support
pillars. The Sky Terrace connects the Atlantis to a 16-acre parcel of land
owned by the Company that is compliant with all casino zoning
requirements, and is suitable and available for future expansion of the
Atlantis facilities, and is currently being used by the Company as
additional paved parking for the Atlantis. The existing Atlantis site
offers almost 1,000 guest rooms in three contiguous high-rise hotel towers
and a motor lodge while featuring approximately 51,000 square feet of
high-energy casino space with 37 table games and approximately 1,500 slot
and video poker machines, a sports book, Keno and a poker room, and a
variety of dining choices in the form of nine high-quality food outlets.